ProPetro Holding Corp (PUMP)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 120,810 | 157,004 | 123,475 | 30,660 | 8,992 | -33,843 | -53,083 | -24,872 | -67,822 | -101,444 | -132,005 | -151,545 | -132,115 | -45,657 | 39,593 | 119,613 | 220,645 | 259,468 | 272,339 | 277,282 |
| Long-term debt | US$ in thousands | 45,000 | 45,000 | 60,000 | 30,000 | 30,000 | — | — | — | 0 | — | — | — | 0 | 0 | 0 | 110,000 | 130,000 | 130,000 | 150,000 | 160,000 |
| Total stockholders’ equity | US$ in thousands | 998,392 | 1,027,330 | 1,008,360 | 982,923 | 954,033 | 830,538 | 817,036 | 847,212 | 826,302 | 842,815 | 844,743 | 847,269 | 870,771 | 911,767 | 938,429 | 961,516 | 969,305 | 944,100 | 909,037 | 869,541 |
| Return on total capital | 11.58% | 14.64% | 11.56% | 3.03% | 0.91% | -4.07% | -6.50% | -2.94% | -8.21% | -12.04% | -15.63% | -17.89% | -15.17% | -5.01% | 4.22% | 11.16% | 20.07% | 24.16% | 25.72% | 26.93% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $120,810K ÷ ($45,000K + $998,392K)
= 11.58%
ProPetro Holding Corp's return on total capital has exhibited fluctuations over the past few years. Generally, the company's return on total capital has been positive, indicating that it has been able to generate profits from the capital invested in its operations.
The return on total capital was relatively low in the first quarter of 2020 at 3.03%, possibly due to economic challenges or specific company circumstances during that period. Subsequently, there was a significant decline in the return on total capital in the second quarter of 2020 and remained negative until the first quarter of 2021. This period of negative returns may suggest challenges or inefficiencies in capital allocation and operational performance.
From the second quarter of 2021 onwards, there was a notable improvement in the return on total capital, with positive figures exceeding 10% in some quarters. This improvement may indicate enhanced operational efficiency, better utilization of capital, or strategic decisions that positively impacted the company's financial performance.
Overall, ProPetro Holding Corp's return on total capital shows variability, with periods of both positive and negative returns. It would be essential for stakeholders to monitor the trend of this ratio over time to assess the company's ability to generate returns from its total capital effectively.
Peer comparison
Dec 31, 2023